For professional investors only

Achieving precision with BMO ETFs

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BMO Global Asset Management – intelligent about Exchange Traded Funds (ETFs) At BMO Global Asset Management, our focus is on the provision of innovative solution orientated ETFs.

BMO ETFs – achieving precision in your clients’ portfolios

In 2009, we launched our first ETF in Canada. Since then, we have built a range of over 70 ETFs and become Canada’s second largest provider. We started to expand our ETF range globally by launching BMO ETFs in Hong Kong in 2014 and then in the UK in 2015. Further expansion has been focused in the UK with the most recent launches in July 2017.

At BMO Global Asset Management, our focus is on providing high quality, solution orientated ETFs.

We thought very carefully about the ETFs we launched in the UK during 2015. Our ambition is to give investors something truly different; something they’re looking for that isn’t already available in the marketplace. BMO ETFs are carefully engineered to target desired levels of income and risk.

Leveraging our strong capabilities in both active and passive strategies has enabled us to develop offerings using new methodologies. Our award winning maturity-banded global corporate bond ETFs typify our commitment. We have not stopped there though in our aim to develop new products. Our range also provides access to quality screened, high dividend paying stocks with our Income Leaders ETFs and sustainable yield with less equity risk through our Enhanced Income ETFs.

Award winning – recognising innovation

At the ETF.com Europe Awards, we were named ‘Best New ETF Issuer 2015’ and awarded ‘Best New Fixed Income ETFs 2015’.

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BMO Global Asset Management – intelligent about Exchange Traded Funds (ETFs)

The continued expansion of ETFs With institutional and retail investors recognising the benefits associated with Exchange Traded Funds, ETFs will play an increasingly prominent role in the growth of the asset management industry, accounting for an increasing proportion of asset flows in many markets and investor segments. ETFs now hold approximately US$4 trillion of assets globally.1

Key ETF benefits

• Diversified portfolios

• Precise exposures

• Transparent

• Efficient

Their rapid rise can largely be attributed to the growing acceptance of indexing, but ETFs are likely to get an additional boost in the coming years from greater penetration of global markets, growing acceptance among more types of investors and the introduction of a wider variety of investment strategies. ETFs are widely expected to continue growing, assets are expected to at least double, reaching US$5trillion or more by 2020.2 The growth of the ETF market, both in terms of product offerings through smart beta and currency options, and through growing investor interest and trading, reflects wider recognition that ETFs can be useful tools for positioning portfolios and addressing market volatility.

Our view is that the ETF industry will continue on its current growth trajectory, buoyed by increased investor adoption. It is our aim that BMO Global Asset Management is viewed as an industry innovator and is helping drive that growth.

1 Source: ETFGI as at end June 2017

2 PWC report ‘ETF 2020’

‘We expect the ETF industry to continue on its current growth trajectory, buoyed by increased investor adoption. We project the global ETF industry to double over the next five years.’

Rob Thorpe, Head of UK Intermediary, BMO Global Asset Management

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BMO Fixed Income ETFs Our fixed income ETFs currently consist of three global corporate bond ETFs spanning different maturity bands and one global high yield bond ETF.

Intelligent index construction

Liquidity has become a key consideration for investors in credit. Each ETF tracks the Bloomberg Barclays Global Corporate Very Liquid Index (VLI)*, a subset of the Bloomberg Barclays Global Aggregate Bond Index. The Bloomberg Barclays Global Corporate VLI applies filters to exclude more illiquid bond issues. * The Very Liquid Index and the abbreviation VLI refer to the benchmark index calculated by Bloomberg and is a name created and owned by Bloomberg. F&C Management Limited makes no guarantees, warranties, claims, or representations as to the liquidity of the assets held in the ETF itself.

Our corporate bond ETFs give maturity options for investors so they can position their credit exposure in line with their view on interest rates and market conditions. They are also currency hedged and aim to provide consistent return by removing currency fluctuations.

Product features

• Global portfolios – diversification and stability of income • Maturity bands – position with precision • Currency-hedged – counter undesired risk exposures• Physical replication – avoid potential conflicts

ETF Name Ticker ETF Objective OCF1 Base Currency

BMO Barclays 1-3 Year Global Corporate Bond (GBP Hedged) UCITS ETF ZC1G Defensive Interest Income 0.30% GBPBMO Barclays 3-7 Year Global Corporate Bond (GBP Hedged) UCITS ETF ZC3G Interest Income 0.30% GBPBMO Barclays 7-10 Year Global Corporate Bond (GBP Hedged) UCITS ETF ZC7G Interest Income 0.30% GBPBMO Barclays Global High Yield Bond (GBP Hedged) UCITS ETF ZHYG Diversified Interest Income 0.35% GBP

1 OCF – Ongoing Charges Figure

Currency hedging Currency fluctuations can have a meaningful impact on portfolio returns. Our ETFs are listed in Sterling and those that invest in non-sterling assets are also available as sterling-hedged funds to mitigate this currency risk.

Liquid benefits Daily liquidity in our ETFs is secured through dedicated on-exchange market making in conjunction with a group of Authorised Participants, facilitating liquidity through the creation and redemption process. This ensures that investors have easy and flexible access when executing their investment strategy.

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BMO Income Leaders ETFs Our equity ‘Income Leaders’ ETFs aim to provide high quality cost effective income orientated solutions. Each ETF is based on new MSCI Select Quality Yield Indices, developed between MSCI and BMO Global Asset Management.

Targeting ‘quality’ income

Filters are applied during index construction in order to identify companies with the highest quality scores and higher than average dividend yields. By identifying quality, they aim to contain leading companies with long-term sustainable business models and clear competitive advantages. Screening for higher than average dividend yields means having the potential to provide investors with a sustainable income stream.

In a low interest rate world, income is set to remain a key challenge for investors – our income leader ETFs are designed to help source attractive and reliable yields from high quality equities.

Product features

• Smart yield – sustainable yield and emphasis on quality• Currency-hedged – counter undesired risk exposures• Physical replication – avoid potential conflicts • Quality index – partnered with MSCI

ETF Name Ticker ETF Objective OCF1 Base Currency

Europe BMO MSCI Europe ex-UK Income Leaders UCITS ETF ZILE European Income Equity 0.35% EURBMO MSCI Europe ex-UK Income Leaders (GBP Hedged) UCITS ETF ZIEG European Income Equity 0.40% GBPBMO MSCI UK Income Leaders UCITS ETF ZILK European Income Equity 0.35% GBPUSBMO MSCI USA Income Leaders UCITS ETF ZILS US Income Equity 0.35% USDBMO MSCI USA Income Leaders (GBP Hedged) UCITS ETF ZISG US Income Equity 0.40% GBPEmerging MarketsBMO MSCI Emerging Markets Income Leaders UCITS ETF ZIEM Emerging Markets Income Equity 0.38% USD

1 OCF – Ongoing Charges Figure

An experienced team Our 13 UCITS ETFs are managed by a London-based team who have extensive experience in index and factor-based investing. They are also able to leverage off our award winning ETF capabilities in Canada and Hong Kong.

BMO Global Asset Management (EMEA) ETFs are UCITS funds, registered in Dublin under the Irish Collective Asset management Vehicle (“ICAV”) structure.

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BMO Enhanced Income Equity ETFs This range may appeal to investors who are looking for alternative ways to generate sustainable income without taking on additional risk. Enhanced Income strategies, also known as covered call strategies, are efficient solutions that can add income to a portfolio without increasing equity risk.

Dynamic selection process

Our proprietary enhanced income strategy is implemented by writing (selling) call options on the index, while owning the underlying stocks. The covered call option strategy allows the portfolio to generate income from the written call option premiums in addition to the dividend yield from the underlying stocks. Historically, covered call strategies have provided a similar long-term performance to the broad market with lower risk.

Out-of-the-money (OTM) covered call options are sold on approximately 50% of the portfolio with a target range of 40-60%, as determined by market conditions. This dynamic approach provides investors with the right balance between enhanced income and participation in rising markets.

Providing equity exposure with a sustainable attractive yield and lower volatility than a traditional market capitalisation weighted index, these ETFs are an efficient way to access an enhanced income strategy combining passive equity portfolio management and a rules-based options overlay methodology, at a low cost.

Product features

• Passive stock selection – full replication of stated index • Enhanced yield – target range 2-4% per annum• Option overlay coverage – target 40-60% of portfolio• Established indices – passive exposure to FTSE 100,

EuroStoxx 50 and S&P 500 with additional index option overlay

ETF Name Ticker ETF Objective OCF1 Base Currency

BMO Enhanced Income UK Equity UCITS ETF ZWUK Enhanced income 0.30% GBPBMO Enhanced Income US Equity UCITS ETF ZWUS Enhanced income 0.30% USDBMO Enhanced Income Euro Equity UCITS ETF ZWEU Enhanced income 0.30% EUR

1 OCF – Ongoing Charges Figure

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Introducing BMO Global Asset ManagementBMO Global Asset Management is a worldwide investment manager. We are owned by the Bank of Montreal, one of Canada’s largest banks and manage around £150bn+* for our clients across a range of asset classes and strategies.

Our aim is to offer clients high quality investment solutions by drawing on our worldwide investment capabilities. These include those in our four regional investment hubs together with the specialist expertise in our network of investment boutiques.

Miami

ParisMilan

Denver Madrid

Sydney

Montreal

Geneva

Stockholm

Milwaukee

Minneapolis

Abu Dhabi

Edinburgh

Lisbon

Amsterdam

FrankfurtMunich

Zurich

Chicago

Toronto

Hong Kong

London

Our business in numbers*

£185bn+ in assets

1500+ employees worldwide

250+ investment strategies

25+ offices

14+ countries

* figures as at 30 June 2017

Canada Launched BMO ETFs in

• Over 70 listed ETFs • #1 in net new assets 6 years in a row• Second largest ETF provider in Canada• Comprehensive platform: – Superior Smart Beta – Innovative Solutions – Comprehensive Fixed Income – Effective Broad Market

Europe Launched BMO ETFs in

• Listed 13 UCITS ETFs (as at July 2017)• Innovative global corporate bond

ETFs with maturity bands • Smart beta income leaders suite• Recognised for excellence

by ETF.com – Best New ETF Issuer – Best New Fixed Income ETF

Hong Kong Launched BMO ETFs in

• Listed 7 local BMO ETFs• Main gateway to China’s

markets• Recognised for excellence by

Asian Asset management Awards: – Best Thematic ETF – Best New ETF – Most Innovative ETF

2009 2014 2015

For professional investors only. F&C Management Limited is the investment manager of BMO UCITS ETF ICAV which is authorised by the Central Bank of Ireland as a UCITS. BMO MSCI Emerging Markets Income Leaders UCITS ETF and the BMO Enhanced Income Equity UCITS ETFs are registered for distribution to professional investors in the UK and Ireland. All the other ETFs are registered for distribution to professional investors in the UK, Ireland, Germany, Italy, Netherlands and Spain.Shares are listed on the London Stock Exchange and may be purchased and sold on the exchange through a broker-dealer. Purchasing and selling shares may result in brokerage commissions. Applications for subscriptions directly to the funds may only be made by authorised participants. Shares purchased on the secondary market cannot usually be sold directly back to the Fund. Secondary market investors must buy and sell ETF Shares with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current Net Asset Value per Share when buying ETF Shares and may receive less than the current Net Asset Value per Share when selling them. Commissions, fees, costs and expenses all may be associated with investments in exchange traded funds. Please read the prospectus and key investor information document (KIID) before investing. Investment objectives, risk information, fees and expenses and other important information about the funds can be found in the prospectus. Exchange traded funds are not guaranteed, their values change frequently and past performance may not be repeated. This document is provided for information purposes only and is not to be construed as investment advice to a recipient on the merits of any investment. This document does not constitute, or form part of, any solicitation of any offer to deal in any type of investment. This document is provided only to assist financially sophisticated investors in their independent review of particular investments and is not intended to be, and must not be relied upon, as the sole basis for any investment decision. This document must not be acted on or relied on by persons who are not relevant persons and who are not the intended recipients of this document. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of any investment, and should consult its own legal counsel and financial, actuarial, accounting, regulatory and tax advisers to evaluate any such investment. Past performance should not be seen as an indication of future performance. The value of investments and income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested. Investing in ETFs involves risk, including risks associated with market volatility, currency rate fluctuations, replication strategies, and changes in composition of the underlying index and assets. Diversification and asset class allocation do not guarantee profit or protect against loss. Views and opinions have been arrived at by BMO Global Asset Management and should not be considered to be a recommendation or solicitation to buy or sell any products that may be mentioned. Investing in ETFs involves risk, including risks associated with market volatility, currency rate fluctuations, replication strategies, and changes in composition of the underlying index and assets. The “Barclays” marks are trademarks of Barclays Bank PLC or its affiliates (“Barclays”) and have been licensed for use in connection with the issuance and distribution of the BMO UCITS ETF ICAV. The BMO UCITS ETF ICAV is not sponsored by, endorsed, sold or promoted by Barclays, and Barclays makes no representation regarding the advisability of investing in it. Bloomberg is a trademark and service mark of Bloomberg Finance L.P. Barclays is a trademark and service mark of Barclays Bank Plc, used under license. Bloomberg Finance L.P. and its affiliates (collectively, “Bloomberg”) or Bloomberg’s licensors own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays Bank PLC or Barclays Capital Inc. or their affiliates (collectively “Barclays”) guarantee the timeliness, accuracy or completeness of any data or information relating to Bloomberg Barclays Indices or make any warranty, express or implied, as to the Bloomberg Barclays Indices or any data or values relating thereto or results to be obtained therefrom, and expressly disclaims all warranties of merchantability and fitness for a particular purpose with respect thereto. Barclays is not the issuer or producer of the Bloomberg Barclays Indices and has no responsibilities, obligations or duties to investors in these indices. While Bloomberg may for itself execute transactions with Barclays in or relating to the Bloomberg Barclays Indices, investors in the Bloomberg Barclays Indices do not enter into any relationship with Barclays and Barclays does not sponsor, endorse, sell or promote, and Barclays makes no representation regarding the advisability or use of, the Bloomberg Barclays Indices or any data included therein.The funds or securities referred to herein are not sponsored, endorsed, issued, sold or promoted by MSCI, and MSCI bears no liability with respect to any funds or securities or any index on which such funds or securities are based. The prospectus contains a more detailed description of the limited relationship MSCI has with F&C Management Limited and any related funds. All rights in the FTSE 100 Index (the “Index”) vest in FTSE International Limited (“FTSE”). “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE under licence. The BMO Enhanced Income UK Equity UCITS ETF (the “Fund”) has been developed solely by BMO Global Asset Management which is a trading name of F&C Management Limited. The Index is calculated by FTSE or its agent. FTSE and its licensors are not connected to and do not sponsor, advise, recommend, endorse or promote the Fund and do not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Index or (b) investment in or operation of the Fund. FTSE makes no claim, prediction, warranty or representation either as to the results to be obtained from the Fund or the suitability of the Index for the purpose to which it is being put by BMO Global Asset Management which is a trading name of F&C Management Limited.

© 2017 BMO Global Asset Management. All rights reserved. BMO Global Asset Management is a trading name of F&C Management Limited, which is authorised and regulated by the Financial Conduct Authority. CM13857 (08/17). UK, IE, ES, DE, NL, IT

BMO Global Asset Management is also part of the ETF Forum which hosts a series of CPD accredited seminars roadshows around the country that are free to attend. Please visit www.theetfforum.com to know more.

+44 (0)20 7011 4444

Client.service@bmogam.com

bmogam.com/etfs

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